Joint venture with local partner envisaged
SHANGHAI, China, Nov. 12 /PRNewswire/ -- General Motors Acceptance
Corporation (GMAC), one of the world's leading automotive financial services
providers, today announced its China business has achieved a major milestone
by becoming the first foreign auto financing company to apply for a license to
conduct business in China.
GMAC, a wholly owned subsidiary of General Motors, has agreed to form a
joint venture with the Chinese partner Shanghai Automotive Group Finance Co.
Ltd. (SAICFC). The partners filed their application after the China Banking
Regulatory Commission announced the auto financing regulations and the
implementation guidelines that essentially open the door for license
"As part of GM's commitment to China's automotive market and consumers,
GMAC is eager to bring its best practices in automotive financing and services
to China so as to benefit Chinese vehicle buyers as well as the overall
development of the auto market," said Richard J.S. Clout, Executive Vice
President of GMAC International Operations.
"We see great market potentials in the auto finance segment in China,"
said Clout. "Globally auto manufacturers sell about 70 percent of their
production through auto finance deals while in China it is a meager 15 to 20
percent. We expect auto financing business will grow 60-80 percent in the
GMAC will form with its partner SAICFC an Automotive Financial Institution
with the headquarters of the new company based in Shanghai. After the
approval of the license the joint venture will start to support the sale of
Shanghai GM (SGM) vehicles -- the joint venture between General Motors Corp.
and Shanghai Automotive Industry Corporation Group (SAIC) -- throughout their
franchised dealer network and offer wholesale and retail finance products.
GMAC and SAICFC will share their complementary business resources, GMAC's vast
experience in global auto finance and many innovative auto finance products as
well as SAICFC's deep knowledge of the Chinese market and local business
"We are bringing to the market our specialized automotive financing
expertise for more than 75 years. And we are here to support those customers
who are in need of funds to buy cars -- this fulfills GM's long term
commitment to the growth of China's auto industry," said Clout.
"Having commenced our internal preparations for business in China already
in 1998, we are very glad that the regulations have now been issued and we
look forward to be able to start business in this exciting and dynamic market
in the near future," said Clout.
"GM's commitment to China is well documented through delivering world
class products and technology to China. Now it is time -- and we are eager --
to deliver the best auto financing practice to China. This joint venture,
which represents the latest extension of the strategic cooperation between GM
and SAIC in China, is well positioned to do just that," said Phil Murtaugh,
Chairman and CEO of the GM China Group.
General Motors, the world's largest vehicle manufacturer, designs, builds
and markets cars and trucks worldwide. Last year it sold more than 8.5
million vehicles in more than 190 countries and territories around the world.
GM has five joint ventures, two wholly owned foreign enterprises and nearly
9,000 employees in China.
General Motors Acceptance Corporation, a wholly owned subsidiary of
General Motors, is one of the world's largest financial services companies
with business lines in automotive finance, commercial and residential
mortgages, and insurance. GMAC has operations in 41 countries and, since
inception in 1919, has extended more than $1 trillion in credit to help
finance more than 150 million vehicles worldwide.
Shanghai Automotive Group Finance Co. Ltd. (SAICFC) is a subsidiary of
Shanghai Automotive Industry Corporation (SAIC Group). SAICFC is one of
China's most successful non-bank financial institutions with a registered
capital of RMB 1 billion and total assets of RMB 21.8 billion as of end of
2002. SAICFC specializes in providing consumer credit, buyer's credit and
financial leasing as well as entrusted loans, etc. Its auto financing
business has now covered the entire China via the SAIC Group dealer network.
-0- 11/12/2003 P
/NOTE TO EDITORS: For additional media information, visit
/CONTACT: Rainer Schlitt of GMAC International Operations,
+49-6142-604-568; or Daphne Zheng of GM China, +86-21-6875-8833, ext. 7631/
/Web site: http://media.gm.com
CO: GMAC; Shanghai Automotive Group Finance Co. Ltd.
ST: Michigan, China
IN: AUT FIN
SU: JVN LIC
-0- Nov/12/2003 14:20 GMT
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